A company plans to allocate revenue across occurrences by using recognition basis.
Which recognition basis can you use?
A company plans to allocate revenue across occurrences by using recognition basis.
Which recognition basis can you use?
The correct recognition basis that can be used to allocate revenue across occurrences is 'Monthly by dates.' This method allocates the revenue amount based on the actual days in each calendar month. Other options such as 'Actual start date,' 'Mid-month split,' and 'First of month' do not align with standard recognition basis methods used for revenue allocation.
D is correct answer
D is correct answer https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-setup
Actual start date is a recognition convention not a recognition basis. Monthly by days is the only one that's actually a recognition basis.
Answer is correct Recognition basis – The recognition basis determines how the revenue price is allocated across the occurrences. Monthly by days – The amount is allocated based on the actual days in each calendar month. Monthly – The amount is allocated equally across the number of months that is defined in the occurrences. Occurrences – The amount is allocated equally across the occurrences, but it can include an extra period if you select Actual start date as the recognition convention. Fiscal period by days – The amount is allocated based on the actual days in each fiscal period. The results of Monthly by days and Fiscal period by days will be the same when the fiscal periods follow calendar months. The only exception is when the recognition convention is set to End of month/period, and the Contract start date and End date fields are left blank on a sales order line.
as per your explanation 'Actual start date' is stated in the text for Occurrences – The amount is allocated equally across the occurrences, but it can include an extra period if you select Actual start date as the recognition convention.
According to explanation at the link: https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-setup , I think D is the correct answer
According to explanation at the link: https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-setup , I think D is the correct answer